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Q. What are the chances of selling my
business in today's market?
A. Approximately 90% of the stable or growing mid-sized
businesses listed for sale at a fair price and with fair terms are sold.
Assuming your business falls into this category, the chances are
excellent. But less than 10% of businesses with an overstated price
or with unreasonable terms are ever sold. Q. I am concerned that my competitors,
customers, employees or competition will find out my business is for sale.
How will you keep my information confidential?
A. We work completely privately
and confidentially. There won't be any "For
Sale" sign. We will only present your business to prospective
purchasers that we have qualified and who have signed non-disclosure
agreements. If we need to market your
business to more buyers, we will do it in a way that does not identify
your business or where it is.
Q. How do I determine the value of my business?
A. It is imperative you obtain an independent appraisal of your
business for the purpose of selling it, especially if your sales
are less than $5 million. An appraisal for sale purposes will keep
you from making a costly pricing mistake: price it too low and you leave
money on the table, price it too high and it won't sell. Your
accountant is generally not the person to do this appraisal,
because most accountants don't sell businesses.
Q. What documents will I need to sell my
company?
A. You need to give qualified prospective
purchasers enough information to decide whether or not your business is a
good fit, financially and otherwise. Generally this will be a
document we will prepare as part of our services, called a Confidential
Business Review or Offering Memorandum. This document is prepared
using information you provide, including your last three years' tax
returns or financial statements, equipment lists, and other documents that
will depend on your industry.
Q. How
long will it take to prepare a Confidential Business Review for my company?
How long will an independent appraisal take?
A. A Confidential Business Review typically takes two to four
weeks to complete after we receive the necessary information from
you. An independent
appraisal for selling purposes will generally take two or three weeks to
complete after receipt of the needed information.
Q What will my investment be?
A. An independent appraisal of the value of your company by an
outside appraiser is accomplished on a fixed-fee basis, negotiated with
the appraiser. The fee depends on the complexity of your business.
It is generally not a significant amount. Further services are
accomplished on a fee basis.
Q. How much information is required
from me
when answering the assessment questions and how much comes from
independent research? I'm afraid the information I give you won't be
objective.
A. You are probably intimately and emotionally involved in your
business, and you know it better than anyone. It is our job to sift
through the emotion and deliver an objective and
statistically sound valuation and a strategy to help you accomplish your
personal goals and objectives.
Q. How much control in my company do
I have to give up?
A. The answer to this question
depends on your personal objectives. You give up only the control
you want to give up.
If you have more questions....
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